CardSmith

This case follows a classic venture of on-campus student conception in 1994, during the late 90s Internet wave reap, to its rebirth as a virtual business model. The company began as a paper-based debit card, Dartmouth College students to purchase goods at participating local pizza shops, copy centers, cafes and the like acquire activated. By the time founder Taren Lent and his partner took their online in 1996, had the green card ‘is a campus wide following significa … Read more »

This case follows a classic venture of on-campus student conception in 1994, during the late 90s Internet wave reap, to its rebirth as a virtual business model. The company began as a paper-based debit card, Dartmouth College students to purchase goods at participating local pizza shops, copy centers, cafes and the like acquire activated. By the time founder Taren Lent and his partner took their online in 1996, had the green card ‘is a campus wide following important provider participation and average monthly sales of $ 160,000. The entrepreneurs financed their expansion with informal investments from family, friends, angels, and a bank loan. In 1999, near the peak of the Internet bubble, they were scooped by Student Advantage, a high-concept ‘venture-backed dot-com that build many millions in online market share in the higher education space. Taren who was heading up the campus card division was amazed at how little attention has been paid to pursue viable revenue models. As a Student Advantage ultimately (and somewhat predictable), ran out of money and was liquidated, the Blackboard campus card segment was sold. However, Taren Lent had other ideas. He and a new partner left to start a virtual card venture in the high school market is concentrated. The focus will soon be put to the test by compelling opportunities that are feasible, but not in its narrow strategic focus, such as business campus, theme parks and government agencies like NASA.
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from
William Bygrave,
Carl Hedberg
Source: Babson College
18 pages.
Publication Date: Jan 15,, 2006. Prod #: BAB138-PDF-ENG
Card Smith HBR case solution